People say different things why businesses are shutting down. Some say low wages in Malaysia cannot sustain high purchasing power etc.

My answer is we have always had low wages in Malaysia. Yet Malaysia has been a haven for thousands of foreign companies for decades. The low wage argument does not hold well.

Despite the low wages, for decades the prices of goods at the supermarkets reflected the wage levels in Malaysia.

Things are going south AFTER 2014. That is when the GST was implemented.

Others say that other countries also have GST or VAT. Yes but in other countries the GST and the VAT affects everyone equally.

It is not the same in Malaysia. Here it is race, race, race.

The largest consumer base in Malaysia are the Malays and bumiputras. In Malaysia the Malays and bumiputras still need the NEP. They depend on the govt handout system. And a vast majority of them are wage earners or salary earners with fixed monthly incomes.

This means their purchasing power is easily dented by higher costs of living (aka price increases aka inflation). 15% price hike simple means their purchasing

The GST has caused prices to increase by at least 15%. That was the immediate impact when GST was implemented in 2014. It should have tapered off by now. However prices are still increasing. Also caused by a falling Ringgit and fluctuating fuel prices. This has severely impacted Malay/bumiputra purchasing power.

The non Malays, very largely make up the business classes and the entrepreneurs. A large number are also wage earners but there are also substantial numbers whose incomes come from revenues - business revenue, trading revenue etc. This means they can "pass through" higher costs to their customers (through higher prices). They are business people.

But higher prices means less sales. So they suffer as well. Hence so many restaurants and businesses are shutting down. But in the long run the nons will find ways to overcome this. Already they are multiplying Malaysia's exports.

If the Malays / bumiputras cannot afford the goods and services produced by the non Malays, the nons will just have to find new markets, overseas to sell their output. It is as simple as that. This is already happening.